Lindsay Lohan on Verge of Losing New York House  2/25/05

Lindsay Lohan is on the verge of losing her Long Island, New York, home due to a questionable business deal carried out by her estranged father. The Speak singer's mother Dina has accused her former husband Michael in divorce papers of forging her signature on a huge loan in 2002 from a New Jersey businessman. 

Following payment defaults, the lender began foreclosure proceedings on their New York house in November 2004 and has alerted prosecutors of possible fraud. Michael turned to his wife to bail him out - after fearing he would be locked up again having spent four years in federal prison for fraud in the 1990s. 

Dina then proceeded to take out a $165,000 (#87,000) second mortgage on their Merrick home - but Michael failed to make the payments. A source says of 18-year-old Lohan, "She's just busy. She has friends and family around her. She's with her mother and sisters and brother."